VANCOUVER, Dec. 7, 2012 /CNW/ - The British Columbia Securities
Commission has settled with a British Columbia corporation and two of
its directors who admitted to illegally distributing securities of
Aviawest Resorts Inc, a B.C. company that sold timeshare interests in
In a settlement agreement with commission staff, Nanaimo residents
Melvin Zulak and Karla Ann Davis both admitted to selling Aviawest's
promissory notes from February 2010 to April 2011 without the company
having filed a prospectus, and without having an exemption from
Acting as agents of Aviawest, Zulak and Davis sold the promissory notes
through Zulak Financial Group Ltd, a Nanaimo-based company primarily in
the business of selling life insurance. Zulak and Davis are directors
of Zulak Financial.
In the settlement, Zulak and Davis admitted that 14 of Zulak Financial's
insurance clients purchased Aviawest promissory notes totaling $770,044
during the relevant period. Zulak and Davis met with their clients,
provided them with the promissory notes, assisted them in signing the
promissory notes and then provided the promissory notes and the
clients' money directly to Aviawest. Zulak Financial received a
commission of 1% for all but one such investment, amounting to
For their misconduct, Zulak and Davis have each agreed to pay $6,000 to
The settlement agreement notes that Zulak and Davis cooperated fully
with commission staff, and that they have no prior regulatory or
disciplinary history. Both remain registered as exempt market dealers.
Aviawest is the subject of a notice of hearing issued by commission
staff in August 2012 (see 2012 BC SECCOM 316).
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the settlement agreement on our website, www.bcsc.bc.ca, by typing Melvin Zulak, Karla Ann Davis, Zulak Financial Group Ltd. or
2012 BC SECCOM 452 in the search box. You may view the Aviawest notice
of hearing by typing Aviawest Resorts Inc. or 2012 BC SECCOM 316 in the
search box. Information regarding disciplinary proceedings can be found
in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial
securities regulators, the Investment Industry Regulatory Organization
of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE: British Columbia Securities Commission
For further information:
For media inquiries, contact Richard Gilhooley, media relations, 604-899-6713.For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).